Pinduoduo Annual Shareholders Meeting: Anchoring High-Quality, Branded China Supply Chain to Recreate Another Pinduoduo Overseas in Three Years

Ebrun Exclusive - December 19th: At today's annual shareholders meeting, Pinduoduo announced the implementation of a co-chairman system, appointing Zhao Jiazhen as co-chairman to serve alongside Chen Lei as co-chairmen and co-CEOs.

Zhao Jiazhen, co-chairman of Pinduoduo Group, stated during the meeting that this year marks the tenth anniversary of Pinduoduo's founding. The company has continued to accumulate expertise in business, technology, and services, with its operations now reaching most countries globally. In the next phase, the company's strategy will be more focused. After repeated discussions, it has anchored China's supply chain as the core of future business development.

He emphasized that the company will continue to pursue high-quality development, going all-in on the high-quality and branding transformation of China's supply chain to achieve platform reinvention and drive a leap in ecosystem value.

Zhao noted that in recent years, Temu has reached a significant scale at a pace that even surprised Pinduoduo itself. This critical leap was driven by the dividends of China's supply chain industry and presents new opportunities for the development of the domestic supply chain, as well as for the next phase of reinvention for both Pinduoduo and Temu. The company will concentrate its efforts, financial resources, and material resources on upgrading and reinventing the supply chain, achieving a comprehensive upgrade in supply chain operational models. High quality and branding are the direction, and he believes that within the next three years, there is an opportunity to build another Pinduoduo.

Chen Lei revealed that Temu has already established a certain market scale in various countries, accomplishing in just three years what took Pinduoduo's domestic e-commerce business a decade to achieve.

In fact, Pinduoduo's third-quarter financial report data shows that after several quarters of decline, its operating profit finally stopped falling and rose, increasing by 1% year-on-year to 271 billion yuan; net profit also grew by 14% to 314 billion yuan—marking the establishment of a profit inflection point.

It is reported that after the release of this financial report, three major Wall Street investment banks—Goldman Sachs, Morgan Stanley, and Citigroup—reached a consensus expectation regarding the development trend of its overseas business: Temu's losses continue to narrow, providing strong support for the company's valuation, with profitability expected by 2026-2027.

In comparison, looking back at Pinduoduo's profitability milestones, its domestic business first achieved positive quarterly EBITDA in Q1 2019 (the fourth year after its founding). However, amid intense subsidy battles, this metric fluctuated due to expanded marketing expenditures. It was not until Q1 2020 (the fifth year after founding) that Pinduoduo's main platform achieved stable positive quarterly EBITDA, completing the transition from external financing to endogenous growth and self-sustaining operations.

By this measure, Temu's growth curve and profit recovery pace are noticeably faster than those of the early main platform.

In terms of valuation, Goldman Sachs provided specific forecasts: Temu's EBITDA is expected to reach 170 billion yuan and 240 billion yuan (approximately $23 billion to $33 billion) in fiscal years 2026 and 2027, respectively—roughly equivalent to eBay's global business.

Notably, Goldman Sachs assigned a 12x P/E ratio to Pinduoduo's domestic core business for 2026, a 12x P/E ratio to Duoduo Maicai, and a 25x P/E ratio to Temu (excluding U.S. fully managed business), indicating higher growth expectations for its overseas operations.

Beyond the three major investment banks, several other well-known institutions have recently issued optimistic forecasts regarding Temu's business recovery:

Nomura's research report stated that PDD Holdings' overseas business may have recovered, with Temu's strategic adjustments beginning to show results; Benchmark pointed out that Temu's growth is increasingly diversified, no longer limited to the U.S., with Europe becoming a key driver for the international business unit; Macquarie expects Temu to maintain growth even amid tariff impacts—attributed to the accelerated promotion of the semi-managed model and Temu's strong expansion into non-U.S. markets.

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